ABSTRACT The daunting and major issue faced by most countries in Africa and the developing world in general is the concern of Private Sector Development (PSD). It is important and appropriate to handle an issue or a problem from it root, and PSD is an issue in developing countries. Humanity’s future is decidedly on the PSD. The paper noted that the private sector of our economy is dominated by Small Scale Enterprises (SSE) which constitute the axiom on which economic activities rotate. The paper therefore examined Small Scale Enterprises (SSE) as the key, bone and foundation of PSD in developing countries. It also examined the existence and pervasiveness of the problems of SSE in developing countries. The paper noted that, the main problems of SSE are finance and taxation; and are responsible for retarding the growth and limiting the number of SSE. The paper noted the study of SSE has been neglected in academic studies in the expense of large firms. Nevertheless, despite of the various sources of finance available for SSE, most SSE in developing countries are being financed by personal savings, “Njangi groups”, credit unions, relatives and friends. The paper suggests future directions/recommendations for PSD. It examines the effects of private sector development on the economy. The paper used biblical setting to illustrate how the private sector development in developing countries can be achieved. Thereafter, the paper concluded, inter alia that the need to survive the wounds of poverty or the problems in developing countries, call for PSD. Thus, there is the need to pay special attention on SSE. And that, aspects that deserve special attention in any such diagnosis are how to finance, promote and encourage the development of SSE in developing countries.